Labor negotiations for area communities are a challenge in tough economic times

Sunday

Mar 29, 2009 at 12:01 AM

While the battle lines are still being drawn, officials are anticipating a contentious season of bargaining between communities and bargaining units that don't have negotiated contracts for next year — and even for those that do.

STEVE DeCOSTA

While the battle lines are still being drawn, officials are anticipating a contentious season of bargaining between communities and bargaining units that don't have negotiated contracts for next year — and even for those that do.

With state and local governments caught in a downward revenue cycle and with layoffs and budget cuts already occurring, cities and towns say they just don't have the money to grant the typical 3 percent raises to which unions have become accustomed.

"The most challenging issue we face is the lack of understanding that the money doesn't exist," said Fairhaven Executive Secretary Jeffrey Osuch, who is still awaiting resolution of negotiations with firefighters for the last three years and has to reopen salary negotiations with the town's police union for next year. "The perception always is that (the union is) entitled and the town needs to find the money."

Some federal stimulus money is now flowing into local treasuries, but, facing cuts in state aid and diminishing local revenues, municipal officials say they not only have to hold the line on union contracts next year, but perhaps even roll back raises that already have been negotiated.

"The communities that have contracts that call for even modest raises are finding that they are now less affordable and many are seeking to reopen those agreements, either to forgo those raises or, in some cases, to roll them back," said Geoff Beckwith, executive director of the Massachusetts Municipal Association.

For the most part, unions are sympathetic to the plight of communities but remain reluctant to make concessions, especially on wages and benefits.

Just witness the actions of the New Bedford police and fire unions, which last month overwhelmingly rejected wage rollbacks and instead accepted widespread layoffs.

"What are we supposed to do, give every benefit we have away?" asked Bob McCarthy, president of the Professional Firefighters of Massachusetts. "That's not going to solve the problem."

And, McCarthy warned: "This is just the beginning."

Some communities wanted to be starting the latest round of bargaining from scratch.

"The Board of Selectmen made a conscious effort to have all the town's contracts, including the School Department, expire at the end of this (fiscal) year," said Alan Coutinho, Acushnet's town administrator.

"That puts us in a significantly better position. It allows us to look at the financial conditions we're operating under and put everything on the table."

"If everybody's playing from the same sheet, it's better," Acushnet Selectman David Wojnar said.

Dartmouth officials felt the same way.

"We felt it was important to bring all the contracts to expire at the same time," said Edward Iacaponi, Dartmouth budget and finance director, treasurer and interim executive administrator. "We wanted to give our negotiating authorities — the select board and the School Committee — a chance to take a good hard look at all the benefits included.

"One of the problems with negotiating with municipal unions is that one contract chases another," he said. "A community can settle with one bargaining unit and that becomes the standard for what the other unions want."

Fairhaven's Osuch said: "The perception is there's always going to be money and, if somebody else got it, then we want it, too."

On the other hand, the New Bedford and Fairhaven school departments are comfortable knowing that they must come up with the money to fund 2 percent and 3 percent raises, respectively, for their teachers.

"Ninety-nine percent of the time in budget building, it's always better to know where you're going to be," said Fairhaven Superintendent Robert Baldwin. "I'd rather have the number set."

"As far as our employees are concerned, they're probably in a pretty good situation."

But the only way some communities will be able to come up with the money to provide those raises will be through layoffs. Some already are seeking financial concessions from their unions.

"We did meet with our unions to suggest it," said Fairhaven's Osuch.

Indeed, on Feb. 3, selectmen sent a letter to the four unions under their control — police, fire, clerical and dispatchers — that stated: "Postponing negotiated wages and forgoing a wage increase would reduce the number of employees that would have to be laid off."

Lakeville Town Administrator Rita Garbitt said, "2010 is a real challenge. We've used up all our reserves. We've combined departments. We've tried to find better ways of doing things, but we've pretty much come to an end. About the only things left to talk about are layoffs or reduction of hours."

"It's the financial reality," Iacaponi of Dartmouth said. "Something's got to give. Unless we get a new, recurring source of revenue, what are we going to do?"

Unions, while understanding the communities' plight, might make concessions, but will do so reluctantly.

"As a general rule, we tend not to reopen contracts over economic issues," said Anne Wass, president of the Massachusetts Teachers Association.

"There is never going to be a freeze for no reason," she said. "Clearly, if a community wants to reopen, the inability to pay is going to have to be clearly evident. And if we do reopen, we'll want to sit down and see if there are other things that aren't economic that could be renegotiated as well."

"These things will happen on a case-by-case basis," Wass said. "In many cases it will be determined by bargaining history. Where there has been a history of harmony, there might be more of a willingness to sit down and work on compensation. But if there's a terribly hostile history, we're not going to be as inclined to reopen."

"There have been some cases in Massachusetts where unions have made concessions, and that's commendable," said Beckwith of the Mass. Municipal Association. "But in general, they have shown they are more concerned with protecting their costly health benefits or their already-negotiated raises than in protecting jobs for their members."

The unions that already have rejected wage rollback have their own reasons for doing so.

"We have adjusted our pay once already," said Lt. Jim Allen, president of the New Bedford firefighters union at a Feb. 11 press conference announcing that the union wouldn't accept the mayor's request for a 10 percent wage rollback. "The real question is, if we adjust it this time and the next crisis comes, do we keep adjusting it downward? To what point?"

At that same press conference, New Bedford police union president Leonard Baillargeon, said of his brothers' vote: "I think what they realize is, if I get laid off and I return, what do I come back to? Do you come back to a department that is not as whole or right, lacking the benefits?

There are still plenty of variables that could come into play, but cities and towns are running out of time. Municipal budgets generally are set by town meeting in April or May, although some communities have gone later in recent years.

Among those variables: federal stimulus money, which is still being distributed, and the amount of local aid from the state, which probably won't be determined until June, at the earliest.

"The federal government can just print as much money as they need, as we've seen recently," said Fairhaven's Osuch. "The state can wait until the 11th hour, or even the 13th hour, as we've seen when they haven't had a budget approved until the fiscal year has already begun. Cities and towns? We're at the bottom of the totem pole. We're at the mercy of everyone else."

In that light, many communities haven't been in any hurry to start negotiations for next year's contracts.

"We haven't started negotiating with any of our bargaining units," said Dartmouth's Iacaponi, who must negotiate with all of them.

"As a general statement, things seem to be going a little slower," said MTA president Wass. "Everybody is waiting to find out what the numbers are going to be. In a lot of places, there's a lot of wait-and-see going on."

With so much uncertainty about those numbers and the financial future, new contracts might look a little different.

While most contracts in recent years have granted raises in the 2 percent to 3 percent range, they might be smaller this year.

"We are negotiating currently with all our bargaining units and have settled with the bus drivers at 1 percent," said Wareham Superintendent Barry Rabinovitch. "I budgeted 1 percent for all units and don't anticipate going above that number."

In some places, the target number may be even smaller.

"Our FY10 budgets have been level funded and do not include any wage adjustments," said Westport Town Administrator Michael Coughlin.

"I think you could see some contracts with zeroes, especially in the first year," Beckwith said. And, "I think you could see shorter contracts."

"Traditionally, most of the contracts have been three years," Iacaponi said. "I'm not sure three years is the way to go right now."

And there could be more than wages on the table.

"Health insurance is a major area and potentially a major stumbling block," Beckwith said. "Many unions are resisting changes that would result in significant savings for taxpayers. They need to make concessions."

Municipalities traditionally pay a high percentage of health insurance costs for their workers, but that may be changing. Lakeville last week increased the percentage nonunion workers will have to contribute, and that notion may be taken into bargaining sessions around the area.

Beckwith also suggested that new light could be shed on the typically secretive bargaining process.

"Local officials are sharing more information with the public so the public understands the circumstances," he said. "This isn't about positioning or trying to put their best foot forward at the bargaining table. The facts are ugly. Communities don't have money. Sharing everything is essential."

The upcoming round of negotiations may be contentious, but, officials feel that when both sides sit across the table they'll have common ground.

"I think the unions understand what's going on and are willing to do what's necessary.," Dartmouth's Iacaponi said.

Even after complaining about a unilateral effort to cut wages, firefighters union president Allen offered an olive branch: "We're going to sit down and try to work with (the mayor) to explore ideas on how we can save money and work with less."

"We don't expect town employees to come to work for free," said Freetown Selectman Lawrence Ashley. "We want everybody to be paid a fair wage. They've got their own bills to pay. They've got their own families to feed.

"Each one of our unions is very clear on the type of dire straits the town is in," he said. "We're willing to work together to try to maintain the level of jobs and the level of services we have."